2024 real estate shift

One of the questions we get is will the real estate market bubble burst? Some people are kept from buying because they think the market is going down soon or will crash.  I do think it will eventually have some sort of correcting but when you hear what I share in this you will realize that it will likely be a long time before that happens.

In 2024 we do predict that there will be more activity and more home transactions in 2024 over 2023.  In 2024 I think nationwide there likely will be at least another half a million real estate transactions this year! #MinnesotaRealEstate

In 2023 across the nation 30% of the inventory was new homes. That number is two times higher then normal. Single Family home and overall construction spending was up year over year as of late 2023 as well.  So new home builders are doing well. One of the reason is the lack of supply...the inventory shortage of homes that is still a challenge.

Another shift from 2023 statistics is the decline in licensed Realtors. Nationwide 1.67% was the fall in licensed realtors and that was the largest decline in many years. Minnesota Realtors actually dropped over 2%.

NFL reference on why poor teams still win end of the year because players in the NFL are week to week for employment and many are for sure year to year. In Real Estate we are technically unemployed if we dont have buyers, and listings to work with. Thankfully The Carstensen Team has build of the business over the years, but still we keep looking for people to work with in 2024!

The biggest shift in 2023 was less transactions happening.  The prices did not change much but the amount of sales happening from the peak of activity in 2021 and the units closed in 2023 was way less.